Who should register for VAT?

VAT thresholds

Value-Added Tax (VAT) registration is obligatory when your annual turnover exceeds the VAT thresholds. If your turnover is less than a threshold limit, you may elect to register for VAT.

The principal VAT thresholds are as follows:

  • €42,500 in the case of persons supplying services only.
  • €42,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials.
  • €85,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods other than goods referred to above.
  • €85,000 for persons supplying goods.

There are other thresholds that can apply on certain transactions that require you to register for VAT.

How your annual turnover is determined

To calculate your annual turnover, you must calculate the total value of the following (excluding VAT), in a calendar year:

  • Supplies of taxable goods and services.
  • Supplies of immovable goods.
  • Certain financial transactions.
  • Insurance and reinsurance services.

Certain transactions are excluded from the calculation of your annual turnover. These are:

  • Occasional disposals of your business assets such as buildings, vehicles or machines.
  • Transfers of goods to a non-European Union (EU) country without there being a supply.
  • Exempt cross-border supplies of new means of transport made from one Member State to another.

Example

Tom, a trader established in Ireland, sells goods worth €70,000 in the 2025 calendar year. In a once-off transaction, he sells a delivery van for €20,000. Tom's total supplies of goods in 2025 are now €90,000. However, the sale of the van is an incidental sale of his business assets. This means that the sale of the van is disregarded for the purposes of calculating Tom's annual turnover for the SME Scheme. His annual turnover for the purposes of the scheme is €70,000.

Additional information on registering for VAT and for the SME Scheme is available in Further guidance.

Next: Other VAT thresholds

Published: 27 October 2026 Print this page

Back to homepage Back to top